Employment Alert  November 2018

The social and economic committee (CSE) is progressively replacing the personnel representative bodies such as the works council (CE) or the single personnel delegation (DUP). The "Macron" order No. 2017-1386 of September 22, 2017 states that this change implies an automatic transfer in full ownership of all the assets, rights and obligations, receivables and debts of these bodies to the CSE. This transfer of the CE/DUP's assets to the CSE is mandatory: the CSE cannot refuse.

But how will this transfer occur in practice?

At the last CE/DUP meeting: the point "Allocation of the CE/DUP assets" has to be added to the agenda and during this meeting, the CE/DUP will adopt a resolution acknowledging the allocation of its assets to the future CSE; At the first CSE meeting: the newly elected members will decide, through the vote of a resolution, to accept the allocation proposed by the CE/DUP or to adopt a new allocation. Thus, the CSE cannot refuse the transfer but it remains free to accept the proposed allocation or to modify it. This point will be added to the agenda of this first CSE meeting. Therefore, care must be taken when drafting the minutes of the last CE/DUP meeting and first CSE meeting to cover all the assets and provide for the distribution of the remaining budget constituting the CE/DUP's dedicated financial assets.

Know this: all the rights which, to be enforceable against third parties, involve carrying out a formality can only be transferred to...